Company Number: 14267694

Analysis Date: 2025-07-20 18:28 UTC

1. Risk Rating: MEDIUM
   The company shows positive net asset growth and maintained compliance with filing obligations, but the sharp increase in current liabilities relative to current assets raises moderate liquidity concerns for this young business.

2. Key Concerns:

• Rapid increase in current liabilities from £46.6k (2023) to £248.3k (2024) could pressure short-term liquidity despite net current assets remaining positive but significantly reduced to £16.2k.
• The company’s very recent incorporation (2022) limits historical financial data, increasing uncertainty around operational stability and resilience.
• Limited disclosure on profitability, cash flow, and working capital management restricts full assessment of ongoing business sustainability.

3. Positive Indicators:

• Net assets and shareholders’ funds nearly doubled from £112.7k (2023) to £208.9k (2024), suggesting capital investment or retained earnings growth.
• Fixed assets increased substantially to £192.6k, indicating investment in long-term operational capacity.
• The company remains fully compliant with filing deadlines for accounts and confirmation statements, indicating good regulatory governance.

4. Due Diligence Notes:

• Investigate reasons for the large increase in current liabilities to assess if these represent trade payables, short-term borrowings, or other obligations and the company’s plan to manage them.
• Request profit and loss accounts and cash flow statements to evaluate operational cash generation and cost structure.
• Assess the nature and liquidity of fixed assets acquired to understand their contribution to business operations and ability to support solvency.
• Confirm whether the average employee increase from 4 to 5 aligns with operational growth or increased overhead.
• Verify absence of director disqualifications or legal proceedings to confirm governance integrity.